EUR/JPY: fall resumed

Yesterday the pair resumed its fall after some strengthening in the previous week.
The Euro was pressured by weak data from Germany where the IFO Business Climate in April fell from 106.7 to 106.6 points, while experts predicted a growth to 107.0 points. Furthermore, the IFO Expectations came out worse than forecasts as well amounting to 100.4 points.

At the same time, the Yen remains under pressure prior to the Bank of Japan Interest Rate Decision. According to expectations, the Japanese regulator could proceed with further monetary policy easing.

Support and resistance

Bollinger Bands on the daily chart is moving horizontally while the price range is widening. However, the price is trading above its upper border thus indicating the possibility of a downward correction. MACD is growing and giving a buy signal. Stochastic continues growing while in the overbought zone.
The indicators recommend waiting for clearer trading signals.

Long positions can be opened after the breakout of the level of 125.53 with targets at 126.16, 126.62 and stop-loss at 124.70. Validity – 2-3 days.
Short positions can be opened after the breakdown of the level of 125.00 with the target at 123.00 and stop-loss at 125.53. Validity – 2-3 days.